Type | Journal Article - The American Economic Review |
Title | The effects of rural electrification on employment: New evidence from South Africa |
Author(s) | |
Volume | 101 |
Issue | 7 |
Publication (Day/Month/Year) | 2011 |
Page numbers | 3078-3108 |
URL | http://xxpt.ynjgy.com/resource/data/20091115/U/MIT20091115040/OcwWeb/Economics/14-771Fall-2008/Readings/electricity.pdf |
Abstract | This paper investigates the employment effects of a mass roll-out of household electrification in rural South Africa. For the 470,000 households that were connected in this area, the new infrastructure represented an improvement in home production technology. I collected administrative and geographic data on this expansion and matched it to two waves of aggregate Census data to test for effects on employment and on fuel use at home. I exploit variation in electricity project placement and timing to estimate district fixed-effects models, and instrument for project placement using land gradient that directly affects the cost of grid expansion. My findings show that cooking with wood falls sharply in treated areas over a five-year period, and lighting and cooking with electricity increase substantially. IV employment results indicate asymmetric responses by gender: female employment rates increase by 13.5 percentage points in treated areas, while there are no significant male effects. Middle-poor communities respond most to the new option to use electricity, and employment effects are large for women in their thirties and forties who are less constrained by child-care responsibilities. This new evidence on how home production infrastructure can affect the extensive margin of work for women contributes to a growing literature on the effects of public infrastructure in developing countries. The results suggest that studies that do not examine employment outcomes may miss important economic effects of these infrastructure investments. |
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